For investors seeking momentum, Global X Uranium ETF (URA Quick QuoteURA - Free Report) is probably on radar. The fund just hit a 52-week high and is up 33.8% from its 52-week low price of $18.31/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

URA in Focus

The underlying Solactive Global Uranium & Nuclear Components Total Return Index seeks to track the price movements in shares of companies which are active in the uranium industry. The fund has allocations to the energy and industrial sectors, with share of 56.2% and 22.3%, respectively. The product charges 69 bps in annual fees (See: all Materials ETFs here).

Why the Move?

The upbeat outlook in the sector results from growing interest in nuclear energy, which has led several developed nations to invest in new infrastructure projects while extending the operational life of their existing nuclear power stations. The ongoing energy issues and the requirement for dependable, environmentally friendly energy sources are helping in the sector’s upsurge.

Strong performance of the sector in the past month was fueled by a robust demand forecast and worries about the availability of nuclear fuel amid chances of sanctions affecting Russia's nuclear fuel supply.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 18.30, which gives cues of a further rally.